Haidilao International’s stock rose on Wednesday after the company disclosed first-half financial results demonstrating strong growth in its delivery operations. Revenue for the period through June increased 7.9% year-over-year to 22.34 billion yuan, equivalent to $3.32 billion, while core operating profit climbed 4.4% to 2.51 billion yuan.
The delivery segment emerged as the company’s fastest-growing division, with revenue surging 121.2% to 2.05 billion yuan. This expansion was primarily driven by accelerating growth in single-serving fast-food offerings and the expansion of its delivery infrastructure through additional local distribution hubs. In contrast, revenue from flagship Haidilao-branded restaurants, which represented 79.9% of total group sales, declined 4% to 17.84 billion yuan, reflecting a reduction in the number of self-operated locations.
As of the end of June, the company maintained 1,389 restaurants operating under its core hotpot brand, alongside 183 restaurants across 21 additional catering brands. Other restaurant operations generated notably stronger results, with revenue jumping 113.1% to 1.27 billion yuan. The company attributed this growth to advances in alternative catering concepts under its “Pomegranate Plan,” which aims to explore new dining formats, including camping-themed hotpot and late-night hotpot establishments.
Management indicated that emerging formats including seafood-stall hotpot and sushi operations have achieved relatively mature unit economics and are transitioning into a phase of large-scale expansion beginning in the second half of this year. These concepts are expected to contribute substantially to revenue growth from other restaurant operations in 2027. Citi analysts noted that operating profit before other income increased 13% year-over-year and exceeded the bank’s forecast by 6%, maintaining a buy recommendation for the stock.
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